Why edgeX crypto’s 28% rally could push EDGE price toward $0.58
EDGE crypto surges after Circle and edgeX announced deepening cooperation.
In a major boost for the EDGE token, edgeX and Circle announced plans to deepen cooperation with the upcoming Arc mainnet launch. After the Arc mainnet launch on the 16th of September, edgeX will become Arc’s primary platform for perps trading.
The platform will offer 24/7 FX trading. According to the agreement, Circle and edgeX will cooperate in the development of Arc’s on-chain foreign exchange and global asset trading markets.
From the 16th of September, edgeX will provide USD/JPY perpetual contracts. The platform will launch over 150 perpetual contract markets covering U.S. stocks, commodities, and crypto assets.
Importantly, the deepened cooperation between the two will strengthen Circle’s stablecoins’ financial infrastructures while helping edgeX extend its reach.
EDGE sees renewed speculation amid positive news
After Circle and edgeX announced their extended cooperation, EDGE bounced strongly on the price charts. The coin finally flipped the $0.40 resistance and climbed to a 7-week high of $0.51.
At the time of writing, EDGE was trading around $0.48, up 28.2% on the daily charts. Over the same period, trading volume climbed 445% to $19 million, indicating strong market participation.
This market participation mostly emerged from speculative traders. According to CoinGlass data, EDGE Open Interest surged 40% to $26.8 million, while the Derivatives Volume rose 445% to $54 million.
Such jumps in both volume and OI suggested that investors deployed capital to open new positions, either shorts or longs.
Why are EDGE traders not fully convinced yet?
However, the price hike has triggered a wave of profit-taking.
On the Perpetuals side, for example, Perpetual’s Sell Volume rose to 27 million compared to 25 million in Buy Volume. The Delta fell to -2.12 million, with also net buying being negative, a clear sign of aggressive selling on the Perpetuals.
Can edgeX’s upsurge hold?
EDGE is currently under strong upside pressure driven by positive news and renewed market interest. In fact, at press time, the altcoin’s Relative Strength Index (RSI) made a bullish crossover and rose to 70.
A bullish crossover and hitting such extreme high levels indicated total buyer dominance in the market. Often with strong buying pressure, and if sustained, assets tend to make more gains.
Therefore, if the current trend holds, EDGE is likely to hold $0.50 and eye to flip 0.58. However, if the speculation fades, a drop to $0.37 will follow.
Final Summary
- Circle and edgeX announced deepening cooperation, eyeing the development of Arc’s on-chain foreign exchange and global asset trading markets.
- EDGE responded strongly, surging 28%, to a 7-week high of $0.51, before retracing to $0.48 at press time
